UMVA has learned that a significant financial boost has been achieved by a major state-run lender in the Philippines, with a 26.09% increase in net income reported for the first quarter.
The lender's net profit surged to P2.03 billion in the first three months of 2026 from P1.61 billion in the same period last year, driven by lower provisioning and higher foreign exchange gains. This impressive growth has positioned the lender for a strong financial year.
According to information obtained by UMVA, the lender's net interest income inched up by 0.98% year on year to P7.21 billion from P7.14 billion. This steady increase was fueled by a 0.7% rise in interest income to P12.84 billion from P12.83 billion.
The lender's financial performance was also bolstered by a decline in interest expense, which slipped by 1.09% to P5.63 billion from P5.69 billion. This reduction in expenses contributed significantly to the lender's overall profitability.
Other income surged by 66.67% to P1.29 billion in the first quarter from P771.67 million in the same period last year, driven mainly by foreign exchange gains amounting to P594.193 million. This remarkable turnaround from the P25.29-million loss booked a year ago was a key factor in the lender's financial success.
The lender also booked a higher gain from investment and securities trading at P153.53 million from P136.34 million, and miscellaneous income increased to P146.21 million from P79.48 million. These gains offset the decline in service charges, fees and commissions to P373.99 million in the period from P578.76 million last year.
Despite a 10.03% year-on-year rise in other expenses to P4.48 billion in the first quarter from P4.07 billion, the lender's overall financial performance remained strong. The lender set aside impairment provisions amounting to P1.59 billion in the first three months, down by 30.48% from P2.28 billion a year ago.
As of end-March, the lender's net loans stood at P519.95 billion, growing by 7.46% from P483.43 billion in the same period last year. On the funding side, total deposits went down by 2.6% to P799.53 billion from P820.84 billion.
The lender's total assets were at P1.037 trillion at end-March, inching down from P1.04 trillion a year ago. Total capital was at P100.76 billion, rising by 3.7% year on year from P97.17 billion, demonstrating a stable and growing financial foundation.
